M/a-com Technology Solutions Holdings Stock Earnings Reports

Q2 FY2026 highlights: revenue $289M (up 6.4% sequential, +22% YoY) and adjusted EPS $1.09; book-to-bill of 1.5:1 with a record backlog. All three end markets (Data Center, Industrial & Defense, Telecom) grew sequentially; Data Center led growth and management raised its Data Center FY2026 growth base case materially (see quote). Operational execution improved gross margin (Q2 adjusted gross margin 58.5%) and adjusted operating margin (Q2 27.8%); management expects continued margin expansion (Q3 gross margin guide 59–60% and adjusted operating margin ~30%). Q3 guidance: revenue $331M–$339M and adj. EPS $1.31–$1.37. Balance sheet and cash flow: cash, equivalents and short-term investments ~$665M, net cash position about $325M vs remaining convertible notes; Q2 operating cash flow ~$78.7M and management expects Q3 OCF > $80M and FY26 OCF to exceed $300M. CapEx guide for FY26 $55M–$65M (~4–5% of revenue). Strategic/technical updates: strengthened photonics (PDs, roadmap for CW lasers), advanced GaN (GaN4) and IPD processes, expanded wafer/epi supply security via an investment and long-term supply agreement with IQE, and active participation in LEO/MEO SATCOM (satellite payloads, gateways, selected terminal components). Timing/risks: CW lasers are under qualification (potential contribution in FY27–FY28 if successful); satellite terminal and LEO ramps are expected to accelerate into calendar 2027; remaining execution risks include qualification timelines, supply chain/commodity inputs and normal program lumpiness. Overall message: strong demand, improving manufacturing yields and utilization, disciplined incremental fab investments (no greenfield builds), and leveraging a broad product portfolio to drive revenue and margin expansion into FY27.